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Getronics is cleared to bid for rival

AMSTERDAM — The Dutch computer services firm Getronics said Wednesday that it would make a formal takeover bid of Â350 million in cash for PinkRoccade on Thursday following overwhelming shareholder approval.

By taking over its smaller Dutch rival, Getronics would become the biggest information technology service provider in the Netherlands and gain sufficient size to compete more effectively in the key British market.

Getronics shareholders, at an extraordinary general meeting on Wednesday, also backed a share issue to raise Â250 million, or $326 million, to partially pay for the agreed takeover.Getronics can now issue up to 173.7 million shares, or about a third of the current number.

Getronics plans to issue the shares in March or early April, Marinus Minderhoud, the supervisory board chairman, said at the meeting.

"Before the end of the month, it will be clear if enough PinkRoccade shareholders are offering their shares," he said.

On Monday Getronics confirmed its intention to buy PinkRoccade after a rival bidder, Ordina, dropped out of the race.The Dutch state, PinkRoccade's biggest shareholder, has backed the Getronics offer.

Earlier Wednesday, PinkRoccade reported a 5 percent drop in 2004 sales, which was in line with its expectations.

Getronics, whose clients include ABN AMRO and Royal Dutch/Shell Group, is interested in PinkRoccade's client base of Dutch government agencies and its British business.

"The deal makes sense for Getronics - both companies have seen pressure on their profit margins in recent years and the combination may be able to boost margins with cost-cutting," said Peter Olofsen at Effectenbank Stroeve.